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The thing missing from your positioning is that unless the parent element also has a declared position, the child will do 1 of 2 things.
If position:relative, it will position as desired but space will be left as though that element was still in the natural flow. So you may move the 500 X 100 element down and over, but a 500 X 100 space will be left, as though it was still there.
If position:absolute, child is positioned relative to browser window and that position does not change even if window contracts or expands.